Both James brothers, the former executives of beleagured First Brands Group, have been released from home confinement.
Edward James, former executive and First Brands Group and brother of founder and former CEO Patrick James, was released from home confinement by Judge Analisa Torres on Tuesday. Patrick James was also released earlier this month.
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Edward and Patrick James were indicted in January on multiple counts of bank and wire fraud as First Brands collapsed into Chapter 11 bankruptcy, shedding thousands of U.S. jobs and shuttering, at least temporarily, several brands in the aftermarket, including FRAM filters and Luber-finer.
[RELATED: Some First Brands employees get temporary reprieve from job loss]
"As alleged in the indictment, Patrick James, together with his brother, Edward James, perpetrated a staggering fraud at First Brands Group," says U.S. Attorney Jay Clayton, the prosecutor in the case. "The James brothers obtained billions for First Brands — and millions for themselves — by presenting their lenders with the impression of a successful, growing international business."
Edward James was arraigned Feb. 4 and released on $25 million bond subject to home confinement enforced via location monitoring by bracelet or cell phone. He also had travel restrictions limiting his movements to the southern and eastern districts of New York and the northern district of Ohio. He could not travel by air except for court appearances or as approved by Pretrial Services or the court, nor could he contact identified victims or witnesses except in the presence of counsel, possess firearms or destructive devices, or open any new financial accounts or change his residence without approval.
"Mr. James has fully complied with these requirements as well as all other conditions imposed by the court and Pretrial Services," a June 18 letter from his attorney, Seth DuCharme, says. DuCharme also says Pretrial Services does not object to the release if it is replaced with a curfew, travel restrictions and enhanced telephone location monitoring and check-ins.
"Mr. James is neither a flight risk nor a danger to the community and his history and characteristics weigh heavily in favor of a curfew," DuCharme says. "Further, Mr. James' strict adherence to all conditions imposed by the court and Pretrial Services over the last four months, and the non-objection of the government and Pretrial Services to a curfew, reflect changed circumstances that warrant modification of Mr. James' release conditions."
DuCharme adds that both before and after his arrest, Edward James remained in communication with prosecutors regarding domestic travel, surrendered his passport to counsel and remained in the United States. He has "longstanding ties" to Ohio, where his immediate family resides.
"Ohio also bears a profound personal significance as the resting place of Mr. James' late son," the letter says. "Mr. James is also an active member of his parish community where he regularly attends church services. These longstanding family and community connections anchor Mr. James to the jurisdiction and weigh heavily against any risk of non-appearance."
Patrick James received similar modifications earlier in June. He was arraigned and released in February on a $50 million bond and on home detention, surrender of his passport and travel restrictions to the southern and eastern districts of New York, and a prohibition on private air travel.
"Since Mr. James' arraignment, the government has produced over 4.4 million documents consisting largely of materials obtained from more than 133 third parties," says Scott Hartman, Patrick James' counsel. "To understand these third-party materials, defense counsel has met with Mr. James in person in Manhattan on a weekly basis. Under his current conditions of pretrial release, Mr. James is required to provide pretrial services with at least 48 hours advance notice before leaving his residence for these meeting. Mr. James has fully complied with these requirements, as well as all other conditions imposed by the court and Pretrial Services. ... The Office of Pretrial Services does not object to replacing Mr. James' home detention with a curfew."
Hartman goes on to say Patrick James is not at flight risk as "the scale of the government's ongoing discovery productions has created materially changed circumstances that impede meaningful preparation under his home detention."
The James brothers were born in Malaysia, but Patrick James' attorney says he has not been to the country in more than 20 years.
"Mr. (Patrick) James has lived in the United States for approximately 40 years, not by circumstance but by choice," Hartman says. "His wife, children, mother, sister and extended family all reside here. His professional career has also been devoted entirely to building American businesses: creating and preserving jobs for American workers, both union and non-union, and strengthening the American automotive aftermarket."
Hartman argues meaningful review of the documents produced by prosecutors frequent in person consultation with Patrick James, and that is hindered by the terms of his home confinement.
The trial of both James brothers is expected to start in February 2027, with pretrial hearings starting in August.
